Team D feels that price discrimination is not a common practice, even though it does occur frequently. Prices are based upon the price elasticity of demand in each given market, but for price discrimination to be effective the national markets must be separate and their price elasticities of demand must differ. Although we feel it is not a common practice price discrimination is not always illegal. According to the Robinson-Patman Act in 1936, five elements must be present: 1. Discrimination - charging various prices to various customers. If the price difference is because of a discount or allowance made to customers and some do not take advantage of it, there is no discrimination. 2. Sales to Two or More Purchasers - the different prices must be charged on "reasonably contemporaneous sale to to two or more purchasers". Actual sales and agreements must exist. This does not include annual or semi-annual sales. 3. Goods - Robinson-Patman appies to the sale of goods, not services. 4. Like - Grade and Quality - the goods involved must be the same. If items are similar, but not identical, there is no discrimination. 5. Reasonable Probability of Competitive Injury - this occurs when one supplier drops his prices below cost in order to put the competitor out of business. After the competitor is gone, the first supplier raises his prices.

Price discrimination is part of the commercial and business world. Movie theaters, magazines, computer software companies, and thousands of other businesses have discounted prices for students, children, or the elderly. One important note though, is that price discrimination is only present when the exact same product is sold to different people for different prices. For instance airline tickets can vary going to and from the same destinations. Many people have felt the effects of high prices from such areas as fuel and medical costs and believe that price...

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...PriceDiscrimination
There is strong evidence in thе marketing literature that consumers are very different in terms of their willingness to pay for products. Empirical studies report high variability in consumers’ responsiveness to marketing-mix variables such as prices, in-store displays, and feature advertisements, as well as in their intrinsic preferences for brands. This empirical consistency suggests that firms have an opportunity toprice discriminate profitably rather than charge а uniform price to all consumers (Gilbert, 2003, pp. 89).
There is а vast literature in economics on thе theory of pricediscrimination , and а number of important papers in marketing have discussed different forms of pricediscrimination and how they might be implemented in practice. Whilst pricediscrimination by а monopolist always leads to profits that are at least as large as those under uniform pricing, thе competitive implications of pricediscrimination in oligopoly markets are more subtle. Shaffer and Zhang (1995), for example, show in а theoretical model that targeted leads to а person’s dilemma in which all manufacturers issue coupons without profitably increasing their prices. Competing firms may gain incremental profits when consumer target ability is very imprecise....

...PriceDiscrimination
Tyrone Norman
East Carolina University
PricediscriminationPricediscrimination refers to the charging of different process for different quantities of a product, at different times, to different customer groups or in different markets, when these price differences are not justified by cost differences (Salvatore, 2012). The Sherman Antitrust Act, Clayton Antitrust Act and the Robinson-Patman Act prohibit pricediscrimination when the intent of that discrimination is to hurt competitors. There are three degrees or levels of pricediscrimination respectively named first-degree, second-degree, and third degree pricediscrimination, while they are similar in all forms of discrimination they differ in the affects that they have on customers and competitors.
Sherman, Clayton and Robinson-Patman Antitrust Acts
The Sherman act prohibits business activities that the federal government recognized as anticompetitive, which means companies that were using certain tactics that would corner certain parts of the market and limit the choices of customers and the competiveness of other companies that were in the same market. The Sherman Antitrust Act of 1890, the first and most significant of the U.S. antitrust laws, outlawed trusts and prohibited...

...PriceDiscrimination in Airline Industries
Jennifer Solomon
University of Maryland University College
In many cases we run into industries that charge various customers different values for an identical good. These industries find that they intensify their revenues by using this method. Those industries that aid by this structure of moneymaking have participated in pricediscrimination. When you are boarding a flight I am sure you know that the passengers around you have not paid the same price as you. Is pricediscrimination suitable or unsuitable for airline passengers? While still analyzing your surrounding son the plane I am sure you may come to realize that there may be some passengers who paid up to five times as much as you. This is sometimes based on the date they purchased their ticket.
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...3 pricediscrimination
With the rapid development of economy and market, the pricediscrimination phenomenon is more and more universal and the form is more and more multiple.
Pricediscrimination refers to companies selling exactly the same or similar production to different customers at different prices.
1In November 2006, the major IT Web site noted, Lenovo in the United States launched a holiday promotion, and four models of ThinkPad were under undercut. TP R60 price was down from $ 640 to $ 565, the maximum price decrease of 33% and 42% respectively. The discount in United States was bigger compared to China. (xueqin Tong, yunyun Huang, Special case of pricediscrimination, June 2007).
2As we all know, the global laptop PC market in general is not the monopoly structure,
there are many well-known brand laptops, such as Asus, Apple and HP.
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TP series are not cost-effective terms. There are not so many companies competing with TP. It is also difficult for other computer companies to collude with TP and to create an avenue, so the ThinkPad series are more influential in the...

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I. INTRODUCTION
Pricediscrimination is observed in most industries. It implies that firms are charging different prices from different consumers, and that the price difference cannot be explained by cost differences. Airline industry is notorious for practicing pricediscrimination for many years. It is well known that on each flight the passengers have paid different prices, and that in some cases we can observe that the highest price is as much as five times the lowest price.
A casual observation would be that there are numerous different versions of an airline ticket to choose among. You can buy an expensive, flexible ticket. Then you are allowed to reschedule the flight or even cancel it without any costs. Or you can buy a cheap ticket, with many restrictions. For example, a Saturday night stay-over is required and so is advance-purchase. Since each and every passenger can choose between different versions of an air ticket, it is natural to consider the theory of versioning when analyzing the pricediscrimination in this particular industry and its effect on welfare of consumers.
II. THEORY OF PRICEDISCRIMINATIONPricediscrimination is a pricing strategy that charges customers different prices for the same product or service. In...

...PricediscriminationPricediscrimination is the practice of charging a different price for the same good or service. There are three of types of pricediscrimination – first-degree, second-degree, and third-degree pricediscrimination.
First degree
First-degree discrimination, alternatively known as perfect pricediscrimination, occurs when a firm charges a different price for every unit consumed.
The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself. In practice, first-degree discrimination is rare.
Second degree
Second-degree pricediscrimination means charging a different price for different quantities, such as quantity discounts for bulk purchases.
Third degree
Third-degree pricediscrimination means charging a different price to different consumer groups. For example, rail and tube travellers can be subdivided into commuter and casual travellers, and cinema goers can be subdivide into adults and children. Splitting the market into peak and off peak use is very common and occurs with gas, electricity, and telephone supply, as well as gym membership and parking...

...﻿Introduction to pricediscrimination
In our study of the theory of the firm we have assumed so far that a business charges a single price for its products, naturally the reality is different!
Most businesses charge different prices to different groups of consumers for the same good or service. Businesses could make more money if they treated everyone as individuals and charged them the price they are willing to pay. But doing this involves a cost, so they have to find the right pricing strategy for each part of the market they serve and their revenues should rise, but marketing costs will also increase.
It is important that you understand what pricediscrimination is, the conditions required for it to happen and also some of the economic and social consequences of this type of pricing tactic.
What is pricediscrimination?
PriceDiscrimination
Definition of 'PriceDiscrimination' is a pricing strategy that charges customers different prices for the same product or service. In pure pricediscrimination, the seller will charge each customer the maximum price that he or she is willing to pay. In more common forms of pricediscrimination, the seller places customers in groups based on certain...

...﻿PRICEDISCRIMINATIONPricediscrimination is the practice of one retailer, wholesaler, or manufacturer charging different prices for the same items to different customers. This is a widespread practice, and does not necessarily imply negative discrimination. In other words, pricediscrimination allows a company to earn higher profits than standard pricing because it allows firms to capture every dollar of revenue available from each of its customers. While perfect pricediscrimination is illegal, when the optimal price is set for every customer, imperfect pricediscrimination exists. For example, movie theaters usually charge three different prices for a show. The prices target various age groups, including youth (0-13), adults and seniors(65+). The prices fluctuate with the expected income of each age bracket, with the highest charge going to the adult population. As it is now understood, pricediscrimination is separated into degrees. First, second, and third degree discrimination exist and apply to different pricing methods used by companies. Much depends on the understanding of the market in segments, and also the consumer’s ability to pay a higher or lower price,...